Intel Predicts PC Prices Will not go any Lower

During the Intel Developers Forum in Palm Springs, Intel vice president Pat Gelsinger predicted that prices for a Windows-based PC will not dip much below the already bottomed-out price of $400. Prices may fall another $50, he said, but that is speculation at this point.

Some PCs have fallen to $399, but these models are considered by analysts to be low-end computers with non-Windows operating systems, such as Linux and Be. Rebates or discounts is another factor to achieving lower prices.

In an effort to maintain market share and hold prices steady, Intel announced a collaboration with Microsoft to create "Easy PC," designed for a population that is fearful of PCs or have decided they just don't need to own one. Easy PC models were unveiled at the show from NEC Packard Bell and AST Computer.